Category Archives: What’s Going On

Where Are The Kids?

Suppose you produce something that is widely consumed.

Braun TV

(Photo credit: Wikipedia)

One day you notice that your customer base is getting older in composition. “Duh,” you’re saying – people age. Of course, but if there continues to be an influx of newer and younger consumers, and if product usage remains steady in the younger segments, there isn’t a problem.

So you do a little digging and find out that use of your product by younger people has dropped off. In fact, use among 18-24 year olds is declining at a fairly rapid pace and over the last 3 years it’s down 18%. What now?

This isn’t a hypothetical case.  Welcome to the world of television.  Nielsen put out their quarterly viewing report and here is how one post summed up the results:

In the space of 3 years, Q1 TV viewing by 18-24-year-olds dropped by a little more than 4-and-a-half hours per week. That’s equivalent to roughly 40 minutes per day, says the report. In percentage terms, traditional TV viewing among 18-24-year-olds in Q1 2014 was down by almost 7% year-over-year. Between Q1 2011 and Q1 2014, weekly viewing fell by almost 18%.

I suspect that if you took sports out of the mix the declines would be even larger.  The younger segments haven’t stopped consuming some of the content but they do so using on-demand video both on the traditional TV screen and alternate screens such as their phones, tablets, and computers.  They’re also off playing games and watching others do the same.

I recognize that the TV business in which I grew up is dead.  How can you sell audiences that don’t exist?  Without the dual revenue stream of payments from cable and satellite operators for the programming I suspect we would have seen some TV companies go dark.  Interesting times just keep getting more interesting in the media business (he said echoing the old Chinese curse).  What’s your take?

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Playing Defense

There was a valuable business lesson to be learned from yesterday’s Mexico/Netherlands game.

2010_05_26-NED_vs_MEX_006

(Photo credit: colin.merkert)

I don’t know if you watched it, but the Mexicans took a lead early in the second half. This was more than a bit of a surprise – the Dutch are one of the favorites in the World Cup and the Team Mexico had barely qualified. El Tri have rarely made it past the round of 16, the stage of the tournament in which this game was played.  They didn’t make it this time either and we can learn from what they did.

After a quiet start, Mexico dominated the first half and scored early in the second.  They played attacking football.  Once they scored, however, the went into a shell and were content to sit back on defense, making the occasional counter-attack but mostly allowing the Dutch to come at them.  Holland is one of the best teams in the world and features three of the best players in the world in the attacking end.  It was only a matter of time before they tied the game given many chances to do so.  yet Mexico played defense.  Sure enough, the game was tied after a corner kick (Mexico had kicked the ball out defensively) and lost when a Mexican defender gave the ref a reason to call a penalty on a (perhaps phantom) trip.

Why the sports report today?  Because we often make the same mistake in business.  We get to a point where we’re happy with what we’ve got and then we play defense.  We don’t develop new products or services.  We don’t encourage our people to advance their skill set.  We sit back and allow the competition to come at us and put all of our resources into defending or delaying their attacks instead of making them wonder how to defend ours.

The time to play defense in business is when there are overwhelmingly negative forces in the market and not when you have a lead.  There will always be other companies attacking you and playing defense is part of any business plan.  However, building a small advantage and then expending all your resources to defend it usually puts you out of the tournament.  Thoughts?

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Your Freezer Is A Rat

Let’s go to the land of creepy this morning.  A couple of things have come out over the last month which transported me there and I thought I’d invite you along for the ride.

Refridgerator with character

(Photo credit: magnetbox)

The first is a study from the folks at IDC Retail Insights and the second comes from TRUSTe.  Both deal with a topic we’ve discussed here in the screed from time to time: data and privacy.

How would you feel about your freezer ratting you out to your doctor about your nightly three scoops of ice cream?  It’s a possibility, you know.  As the “Internet Of Things” becomes a reality, the same smart appliance that lets you know the ice cream is nearly empty and which adds it to your digital shopping list can also report in the frequency and rate of the product’s depletion.  To whom?  Your doctor, your insurance company, or to anyone else that buys the data.  That makes me uncomfortable (not that I eat ice cream any more) and apparently I’m not alone:

When researchers told the survey respondents that their Web-enabled devices could collect data, the vast majority — 87% — said they were concerned about the type of personal information gathered. Almost the same proportion — 85% — said they would want to know more about data collection before using “smart” devices… Just 14% were comfortable sharing such information with ad companies, while only 19% felt okay about allowing market researchers to access the data.

That’s from the Media Post report on the TRUSTe study.  I believe that many companies entering this space are of the “ask for forgiveness” mindset instead of the “get their permission.”  That’s unfortunate and might lead to some nasty backlash, as the IDC study found:

According to the survey results, and contrary to popular belief, only a minority of consumers are openly disposed to the “give to get” exchange of private information for guidance dependent on a retailer having access to such information – 14% are privacy spenders and 15% are open guidance seekers… Shoppers split about equally into two groups, those who choose privacy over relevancy and those who prefer relevancy over privacy, 53% to 47%. But by nearly a two-to-one margin, 62% to 38%, more consumers believe that they do not have enough control over their privacy in the hands of the retailers they shop.

So while the advantages of the technology, both for consumers and for businesses, are evolving, I’m of the opinion that a strong statement about privacy needs to come from the folks who are pulling together these collection devices.  We’ve seen the FTC cite Google, Facebook, and others for gathering data without permission and consumers are even more attuned to the practice now than they were years ago.  Why not get better data in the open instead of asking our appliances to rat us out without our permission?  Thoughts?

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